US financial services firm to open Irish base for Brexit

Wednesday, July 18, 2018 - 12:00 AM

Eamon Quinn

A US financial services firm involved in the multi-billion financial derivatives business has opted to set up in Ireland as Brexit draws closer. The Depository Trust and Clearing Corporation is establishing an office in Dublin for firms to report their trade transactions.

It employs 300 people in the UK but for regulatory purposes needs to have a base for reporting trade transactions at a location in the EU, when the UK leaves next year.

“Our continued growth and desire to get ahead of new regulatory obligations, because of Brexit, now takes us across the Irish Sea to Dublin,” said Simon Farrington, managing director, Europe, the Middle East and Asia at the corporation.

The number of jobs is likely to be small, probably only 10, but the Irish authorities will be hoping it will help in their campaigns to lure more financial firms to Ireland, in competition against Frankfurt, Paris, and Amsterdam.

Ireland lost out in bids to attract EU regulatory agencies that have to leave London. The Depository Trust and Clearing Corporation announcement was welcomed by the Government.

“As we face into the challenges of Brexit, we are determined to pursue and seize new opportunities and the Government has, therefore, been making strenuous efforts to ensure that we have the right conditions in place in Ireland to attract the key knowledge-based sectors,” said Business Minister Heather Humphreys.

The new office “will add to our growing capabilities and reputation as an international financial services location of choice”, IDA executive director Mary Buckley said.

While Paris appears to be catching up in the race for jobs, several companies have chosen to move staff to a number of locations in the EU rather than building a single hub. That could end in disappointment for Frankfurt, according to a lobby group for the city.

“A clear warning signal is that most banks are spreading jobs widely across Europe to keep all relocation options open,” said Hubertus Vaeth, managing director of Frankfurt Main Finance.

“From a German point of view, there is a risk of losing gains that have been considered as certain,” he said.

JPMorgan Chase and Goldman Sachs are among companies that plan to relocate staff to several EU locations as part of their Brexit contingency plans. For its part, Bank of America will initially move about 200 sales and trading staff to Paris and Frankfurt, it said last year. In November, Paris was chosen as the new home for the European Banking Authority.